PETALING JAYA: Turbo-Mech Bhd
aims to increase its orderbook to RM50 million this year from RM20 million now, targeting works in the downstream oil and gas (O&G) sector including maintenance and overhaul services for local and overseas market.
Executive chairman Gan Kok Ten said despite the challenges in the O&G industry, the group believed that the services segment still offered good opportunities in the near term.
He said the target would also be driven by the capacity of the group's new workshop in Singapore, which is expected to be fully operational by the third quarter of this year.
Last year, Turbo-Mech unit Turbo-Mech Asia Pte Ltd acquired a piece of property from Well Transport and General Contractors Pte Ltd for S$8.1 million (RM24 million) to be used as a workshop.
"By improving the service businesses, we can increase the group's value in the long run.
"For Turbo-Mech, we are doing a lot of maintenance and overhaul services for rotating equipment such as pumps, compressor and turbines... so these are among the downstream businesses we are focusing on now," he told Bernama after the group's AGM in Petaling Jaya on Friday.
Turbo-Mech is well positioned within the supply chain, from equipment manufacturers to end-users, with a focus on O&G, petrochemical and chemical industries.
It is also involved in the sale of rotating equipment and spare parts.
The group's operation covers the South-East Asia region and is segmented into Malaysia, Singapore and other countries.
"At the moment, we have 60 clients in the region and most of them are based in Singapore and contribute significantly to the group's revenue," Gan added.
For the financial year ended Dec 31, 2015, the group's pre-tax profit fell to RM9.55 million from RM16.18 million a year earlier.
Revenue was down 23.5% to RM36.09 million from RM47.17 million previously, mainly due to increased challenges in the O&G industry which was impacted by the drop in global crude oil prices. - Bernama
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